KUALA LUMPUR – Malaysia-China strategic engagement via Chongqing might result in market expansion, technology transfer, and cross-border investment, particularly in the development and manufacturing of crucial parts and components for electric vehicles (EVs) or Next Generation Vehicles (NxGV).
The Ministry of International Trade and Industry (MITI) recently stated that the Chongqing Municipality is one of the most important economic areas in Southwest China. It serves as a critical key manufacturing base for automobiles, automotive parts, and components, primarily for electric and autonomous vehicles.
“The Regional Comprehensive Economic Partnership (RCEP) agreement sends a strong positive signal to Malaysia and China. Participants of the RCEP have the option to open our markets rather than resort to protectionist measures during this difficult period,” it added.
The ministry also explained that Malaysia and Chongqing want to leverage the New International Land-Sea Trade Corridor and the Regional Comprehensive Economic Partnership to further develop trade and investment connections.
“As a result, opportunities abound for businesses from Malaysia and China to collaborate as part of the RCEP supply chain, which would be enabled by the respective investment promotion and trade facilitation agencies of both countries,” it clarified.
Malaysia’s total trade with Chongqing Province improved by 16.5% to US$3.8 billion (RM15.9 billion) in 2021. MITI further stated that the overall exports had increased by 13.7% to US$2.9 billion (RM12.1 billion), while net imports increased by 9% to RM3.8 billion.
To maintain the positive momentum, Deputy International Trade and Industry Minister Datuk Lim Ban Hong emphasised the necessity of leveraging the RCEP framework to maintain momentum between Malaysia and China, the statement added.
Lim recently hosted a virtual meeting with Vice Mayor Cai Yunge of the Chongqing Municipal People’s Government, which was also attended by senior officials from MITI, the Chongqing Municipal People’s Government, the Chongqing Commerce Commission, and the Malaysian Investment Development Authority (MIDA).
Lim stated during the virtual meeting that Malaysia and China, through Chongqing, will establish a working group comprised of senior officials to oversee the summit’s proceedings.
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